What is Tezos baking?
Tezos baking is the process of signing, closing, and publishing a block of data in the Tezos blockchain. Tezos uses a process called Proof of Stake to secure data and create a reliable and secure ledger. Proof of Stake or POS is a method for selecting a person to perform the task of placing a record into the blockchain and closing it. Baking is the name given to the official process of putting a group of data into the blockchain using the POS method.
By way of background, the POS system is an advanced form of creating cryptocurrency and other digital assets. The early types of cryptocurrency used a process called proof or work. The proof of work process was relatively slow and required a heavy usage of electricity and computing machines.
While proof of work was secure, it did not produce a democratic result of shared responsibility. Proof of work also was costly to the miner and to the issuer. The investment in machinery and electricity did not contribute to the value of the currency or to the efficiency of the blockchain.
Tezos used a proof of stake theory and refined it to meet their democratic model. In the Tezos system, every stakeholder can win the opportunity to participate in the baking process. With little or no additional financial burden, every stakeholder can participate in the POS process that makes the platform work well and remain stable. The stakeholder must place its assets as a security. The system polices the baking process to ensure honesty and punish bad conduct.
How Do You Earn Tezos ?
Bakers earn Tezos for baking which is the process of placing a piece of data into the blockchain. A stakeholder can earn Tezos by baking, or by delegating their rights to other stakeholders. When a stakeholder bakes or delegates his and her rights, they receive all or the apportioned share of the authorized fee.
The stakeholder must provide a security when performing a baking process or delegating it to someone else. The process provides incentives for honesty in the form of rewards. The system also provides penalties for dishonesty and nonperformance. The rules can cause a loss of the stake or security deposit.
What is a Tezos Baker?
A Tezos baker is a stakeholder that wins selection as a baker or the person or group delegated to perform the task. A baker is a tezos stakeholder that wins selection or the delegate of the winner. The baker performs the process of placing data into the blockchain and securing it in the necessary sequence. Baking proceeds only after the node or ledger locations reach a consensus on the data, its completeness, and accuracy.
A stakeholder must meet the minimum level of ownership of Tezos and have a registration in good-standing. The selection criteria often include the size of the stake allocated to the transaction.
How to Find a Good Tezos Baker?
Any stakeholder can win the right to sign, close, and publish a transaction by entering it into the blockchain. Baking is an essential task and it provides income for the person or group that performs the work. The blockchain maintains delegation units that can assign the task to a knowledgeable and capable delegate. The POS system provides for allocation of the fees to the original stakeholder and the delegate.
Tezos bakers can be specialized groups or companies that offer the infrastructure and experience needed to quickly and efficiently prepare a block entry for signing, closing, and publication. Bakers must be registered and qualified. When delegating, the stakeholder must rely upon the delegate to perform, receive payment, and return the owner’s share.
Delegates should be experienced, have a track record of success, and have a reliable bond. Stakeholders can consult lists of community-rated delegate baker services to identify likely candidates before making a selection.